Apple to Pay $450 Million to Settle E-Book Price Fixing Case

ibooks-iconAccording to court records filed on Wednesday, July 16, Apple will pay $450 million as part of an out-of-court settlement with class action lawyers and state district attorneys over e-book price fixing, reports Reuters.

Apple first reached a settlement agreement with the 33 U.S. states and territories involved in the lawsuit in June, successfully avoiding a lengthy and expensive damages trial. Settlement details were sealed at that time, however, pending court approval. $400 million of the $450 million is earmarked for consumers.

The settlement is contingent on a pending appeals case Apple filed in February with the U.S. Circuit Court of Appeals in New York. In the filing, Apple asked the court to overturn the original ruling that found the company guilty of conspiring to fix e-book prices.

"We have obviously studied Judge Cote's July 2013 ruling in detail, and believe that the 2nd Circuit will agree with her conclusion that Apple did violate federal antitrust laws," said Steve W. Berman, managing partner of Hagens Berman and lead attorney representing the consumer class. "In any case of this magnitude, there are high degrees of uncertainty, and Apple's appeal of Judge Cote's well-reasoned ruling is an example of that uncertainty."

Though found guilty, Apple has maintained its innocence throughout the dispute, claiming that it "kick-started competition in a highly concentrated market, delivering higher output, lower price levels, and accelerated innovation." Should Apple's appeal be successful, sending the claim back to District Court, the company will pay out $50 million to settle consumer damages claims. If the appeals court reverses the initial decision entirely, Apple will pay no damages.

Along with $450 million in damages, Apple has also been subjected to several penalties levied by the U.S. Department of Justice, including an order to hire an external antitrust monitor. Publishers involved in the case, including Hachette, HarperCollins, Simon & Schuster, Macmillan, and Penguin also settled for a total of $166 million, which has already been making its way to customers in the form of refunds.

Popular Stories

Alleged iPhone 17 Pro Antenna Design

Two All-New iPhone 17 Colors Seemingly Confirmed

Monday August 25, 2025 4:22 am PDT by
Apple will offer the upcoming iPhone 17 Pro and iPhone 17 Pro Max in a new orange color, according to Bloomberg's Mark Gurman. Gurman made the claim in the latest edition of his Power On newsletter, adding that the new iPhone 17 Air – replacing the iPhone 16 Plus – will come in a new light blue color. We've heard multiple rumors about a new iPhone 17 Pro color being a shade of orange. The ...
AirPods Pro 3 Heart Rate Tracking Feature

AirPods Pro 3 Expected to Launch This Year With Key New Feature

Sunday August 24, 2025 7:16 am PDT by
Bloomberg's Mark Gurman expects Apple to release new AirPods Pro this year, and he said the earbuds will have a key new feature: heart rate monitoring. From his Power On newsletter today, with emphasis added:As for Apple's other devices, there's a lot in the fall pipeline — though many of the new products are only incremental upgrades. There will be Apple Watch updates, faster Vision...
iPhone 17 Pro on Desk Centered 1

iPhone 17 Pro Coming Soon With These 12 New Features

Sunday August 24, 2025 6:00 am PDT by
Apple's iPhone 17 Pro and iPhone 17 Pro Max should be unveiled in a few more weeks, and there are plenty of rumors about the devices. In his Power On newsletter today, Bloomberg's Mark Gurman corroborated a rumor that iPhone 17 Pro models will be "available in an orange color." Below, we recap key changes rumored for the iPhone 17 Pro models: Aluminum frame: iPhone 17 Pro models are...
iPhone 17 Air Thumb 2 Blue Electric Boogaloo

Apple Has Reportedly Considered Releasing iPhone 17 Air Bumper Case

Sunday August 24, 2025 12:40 pm PDT by
Apple has "considered" releasing a bumper case for the upcoming iPhone 17 Air, according to Bloomberg's Mark Gurman. Similar to the bumper case that Apple introduced for the iPhone 4 in 2010, Gurman said the iPhone 17 Air version of the case would cover the edges of the device, but not the back of it. Those bumper cases were made of rubber. Given that the iPhone 17 Air is expected to have ...
awe dropping event

Apple Event Announced for September 9: 'Awe Dropping'

Tuesday August 26, 2025 9:01 am PDT by
Apple will hold its annual iPhone-centric event on Tuesday, September 9 at the Apple Park campus in Cupertino, California, according to an announcement that went out today. The event will start at 10:00 a.m., with select members of the media invited to attend. At the September 2025 iPhone event, Apple will unveil the iPhone 17 lineup, which includes an all-new ultra-thin iPhone 17 Air. It...
Awe Dropping Apple Event Feature

Five Things to Expect From Apple's 'Awe Dropping' September 9 Event

Tuesday August 26, 2025 4:17 pm PDT by
Apple today announced its "Awe Dropping" iPhone-centric event, which is set to take place on Tuesday, September 9 at 10:00 a.m. Pacific Time. There are a long list of products that are coming, but we thought we'd pull out five feature highlights to look forward to. That Super Thin iPhone - Apple's September 9 event will see the unveiling of the first redesigned iPhone we've had in years, ...
airpods pro 2 gradient

AirPods Pro 3: Four Key Design Changes Anticipated

Tuesday August 26, 2025 4:05 am PDT by
Apple hasn't updated the AirPods Pro since 2022 other than a shift from Lightning to USB-C, and the earbuds are due for a refresh. According to Bloomberg's Mark Gurman, Apple will launch AirPods Pro 3 later this year, and apart from new features like heart rate monitoring, we're also expecting a few design changes. The fourth‑generation AirPods offer useful clues to Apple's design cues for ...
Awe Dropping Apple Event Feature

Apple Event Logo Hints at Two iPhone 17 Pro Features

Wednesday August 27, 2025 6:36 am PDT by
Apple's logo for its upcoming September 9 event hints at two rumored iPhone 17 Pro features, including new color options and a vapor chamber cooling system. Of course, this is all just speculation for fun, as we count down the final days until the event. New Colors Last month, Macworld's Filipe Espósito reported that orange and dark blue would be two out of the five color options...

Top Rated Comments

heyyoudvd Avatar
145 months ago
What a joke.

Apple tries to save the e-book industry from an abusive monopolist (Amazon) and instead of being thanked for improving the state of competition, the government slaps it down to protect the monopolist.
Score: 29 Votes (Like | Disagree)
Roger Wade Avatar
145 months ago
What a shame ...

Yes, I agree with you 100%.

it's too bad that Apple has to resort to these measures when they've got billions in the bank.
Score: 21 Votes (Like | Disagree)
ouimetnick Avatar
145 months ago
What a joke.

Apple tries to save the e-book industry from an abusive monopolist (Amazon) and instead of being thanked for improving the state of competition, the government slaps it down to protect the monopolist.
Hi Tim! :cool: didn't know you have a MacRumors account.
Score: 14 Votes (Like | Disagree)
johnnnw Avatar
145 months ago
What a joke.

Apple tries to save the e-book industry from an abusive monopolist (Amazon) and instead of being thanked for improving the state of competition, the government slaps it down to protect the monopolist.
Hahahahahahahahaha you are so brainwashed it's unbelievable

Hope you don't get an email signed "Tim Cook" telling you to jump off a bridge or something, you'd believe it was him.

Tip: it's fake

Apple can do no wrong in your eyes
Score: 12 Votes (Like | Disagree)
CarpalMac Avatar
145 months ago
Though found guilty, Apple has maintained its innocence throughout the dispute
Yes, paying $450m as an out of court settlement screams "we are innocent" to me.
Score: 12 Votes (Like | Disagree)
jclo Avatar
145 months ago
I never understood that judgement. What exactly was the damage?

Legit question here, what is the difference between what Apple did and what Amazon does? Because I hear people say that Amazon gets away with worse than what Apple did.

is this the things about Apple and Publishers making prices "set" for ebooks?


This is an odd thing. it sounds like stopping the "price fix" means a company can sell books for a really low price (even at a loss) which is GOOD for the consumer.
BUT, that means smaller companies that cannot afford to sell that low or at a loss will LOOSE OUT. Which means less competition overall which isn't good for the consumer.

Like a double-edged (or triple-edged) sword.

Under the original wholesale model, companies like Amazon would pay a set amount for books from publishers and were then free to price ebooks however they wanted. Amazon often sold books at a loss or at very small profit margins to edge other sellers out of the market (and to encourage customer loyalty), which in turn forced publishers to continually cut the price on books. Publishers dislike the wholesale model because it encourages consumers to expect lower priced books, a burden that ultimately falls on them.

Under the agency model, set up by Apple, publishers set the price for books and retailers like Amazon were paid a set amount for every book sold (a 30/70 split, more or less). Because Amazon wasn't buying outright and setting its own prices, this ultimately led to higher e-book prices and more profit for publishers. Apple and six major publishers forced Amazon into an agency model over a wholesale model.

Another issue surrounding Apple's agreement with the major publishers included a "most favored nation" clause that prevented publishers from selling books at other retailers at a price lower than what was available in the iBookstore. Basically, publishers set book prices higher and no one could sell them lower than what was available in the iBookstore, and according to the DOJ, this resulted in artificially higher prices across the board for consumers. Definitely somewhat of a lose/lose situation -- either customers get higher prices or Amazon kills competition by taking a loss.
Score: 10 Votes (Like | Disagree)